Airlines stocks are down today after a poor earnings report from Delta Air Lines (NYSE:DAL), which indicated industry profits were down during the peak travel season, and were likely to fall even further in the next quarter as the summer comes to an end. While Delta makes the majority of its income from corporate accounts rather than leisure travel, insulating the carrier against a too significant a dip in profits in the coming quarter, higher fuel and maintenance costs are hurting their profits, with recent fare hikes only helping to offset higher input cost. The carrier also accepted voluntary departures from over 2,000 employees in order to reduce spending, making its second quarter more profitable than it might have been.
This week, major carriers’ shares have been down as jet fuel prices remain high and leisure travel declines, and Delta’s news only puts airline stocks further in the red. The NYSE Arca Airline Index (XAL) is down 3.07% so far this morning to the lowest it’s been in over a year. In the last year, the index has declined nearly 10% while the S&P 500 has been increasing, up 19% in that same time.
Here’s a look at how a number of popular airline stocks are trading today:
Delta (NYSE:DAL): -3.07%, United Continental Holdings (NYSE:UAL): -3.36%, US Airways (NYSE:LCC): -2.03%, AMR Corp., American Airlines (NYSE:AMR): -3.55%, JetBlue Airways (NASDAQ:JBLU): -0.21%, Southwest Airlines (NYSE:LUV): -1.38%, Alaska Air Group (NYSE:ALK): -1.39%.